Russell Cohen

February 2012

If you’re an entrepreneur, you probably began your business to either pass it down to your children or sell it so that you can finally have a fulfilled retirement. However, there are often very large stumbling blocks that can have huge implications as you go along the road to that sale. You put a lot of money into your business throughout the years, so you really have to make sure that you get that money out in your exit strategy. It just isn’t enough to do all that hard work to make your business worth a fortune if you can’t get those rewards back out. So is wise to exit your business planning ahead.

Know that the strategy you used to start your business should be just as important as what you would use to sell it in order to reap the just rewards.

The successful exit is generally the original motivation for business ownership in the first place.

Don’t wait until the last minute to sell. You can’t wait for your business to stagnate. Sell when business is booming, but don’t be in a rush so that you leave money on the table.

Get your affairs in order. Make sure your records (financial) are accurate and ready for sale. There are legal requirements, contracts, valuations, equipment, assessment of stock, liabilities and many other requirements. None of which is an easy task to fulfill.

Look at the sale from the point of view of the buyer. He or she is looking for stable revenue. Remember, they are not buying you, they are buying your business.

Above all, keep your business running and growing throughout the sale. If a deal falls through, you sales are still up.

Make sure you have professional help and assistance. There is due diligence and the marketing of your business to consider.

Always be prepared to say no. That does take a lot of energy, but the deal has to be right. Make sure you evaluate all options through the entire sale process, remembering that there is a buyer somewhere out there. You just have to be patient, do your due diligence in making sure that buyer is the right one and is giving you the right price and then… you’re good to go!